Elliott wave analysis of EUR/JPY for October 10, 2018

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EUR/JPY spiked slightly lower than the ideal target at 129.49 and dipped to 129.31 before tuning higher. We think the possibility of blue wave (2) has completed is high, but we need a break above minor resistance at 130.23 as a first strong indication that this indeed is the case. While a break above resistance at 131.42 will confirm blue wave (2) has completed and blue wave (3) towards 138.10 is developing.

Short-term support is seen at 129.53 and then at 129.31.

R3: 131.45

R2: 130.88

R1: 130.58

Pivot: 130.23

S1: 129.88

S2: 129.53

S3: 129.31

Trading recommendation:

We are long EUR from 130.70 with our stop placed at 129.25. If you are not long EUR yet, then buy near 129.53 or upon a break above 130.23 and use the same stop at 125.25

The material has been provided by InstaForex Company - www.instaforex.com